Realty Income (O): Reliable Dividend Stock with 5.4% Yield
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Stable Income: Realty Income, as a REIT, must distribute 90% of its earnings as dividends, reporting an adjusted funds from operations (AFFO) of $1.08 per share in Q3, a 2.9% increase from last year, demonstrating resilience in a challenging real estate environment and boosting investor confidence.
- Diversified Investments: Realty Income owns approximately 15,500 properties globally, expanding beyond retail into sectors like industrials and casinos, with significant acquisitions of major retailers like Sainsbury's and Tesco in the UK, further diversifying risk and enhancing business security.
- Growth Potential: Despite high-interest rate pressures, Realty Income is actively acquiring new properties, estimating a global market opportunity of $14 trillion, with nearly $100 billion in sourced acquisition opportunities as of Q3, showcasing strategic advantages during market downturns.
- Quality Dividends: Realty Income offers a high dividend yield of 5.4% and has paid dividends for 667 consecutive months, over 55 years, with 113 increases in the past 28 years, highlighting its reliability as a source of stable income.
Analyst Views on O
Wall Street analysts forecast O stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for O is 62.28 USD with a low forecast of 60.00 USD and a high forecast of 67.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
3 Buy
7 Hold
0 Sell
Moderate Buy
Current: 60.720
Low
60.00
Averages
62.28
High
67.50
Current: 60.720
Low
60.00
Averages
62.28
High
67.50
About O
Realty Income Corporation is a real estate investment trust. The Company is engaged in acquiring and managing freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients. It is engaged in a single business activity, which is the leasing of property to clients, generally on a net basis. That business activity spans various geographic boundaries and includes property types and clients engaged in various industries. The Company owns or holds interests in approximately 15,621 properties located in all 50 United States (U.S.) states, the United Kingdom, France, Germany, Ireland, Italy, Portugal, and Spain with clients doing business in 89 industries. Its property types include retail, industrial, gaming and others, such as agriculture and office. Its primary industry concentrations include grocery stores, convenience stores, dollar stores, drug stores, home improvement, restaurants-quick service and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
